It’s not fun to attend a party just when you’ve decided to go on a diet, isn’t it? You have plenty of food and drinks to choose from, but you need to restrain yourself because you want to lose some weight.
Let’s be honest. The temptation is strong, and we may hear that inner voice gently whispering to us, “Go ahead and eat. Have a cheat day. You can exercise tomorrow anyway.” That’s how budgeting is like for you, me, and everybody else.
Even if we know better, sometimes, it’s hard to stick to our budget. If you have credit cards, it becomes even more difficult to resist spending money we haven’t earned yet.
Credit cards are like those bad enabling friends that urge you to buy and say, “It’s all right. You can pay it off next payday.”
So, how do you avoid getting in over your head financially without feeling like you’re depriving yourself? Is that even possible?
The answer is yes. You can save money, enjoy life, and feel content by having the right mindset and applying these simple ways you can stick to your budget.
Be on top of your income and spending. The first thing you need to do is to make a list of how much money is coming in and how much is going out. If you are a full-time employee, write how much net income you earn every week or every fortnight.
Then list all the bills you pay each month, like rent, mortgage, car payments, utilities, credit card bills, you name it. Then calculate how much is left after paying these off. This is your emergency fund. So, make sure to put some, if not most of it away on your savings account.
If you still have some money left over after you’ve got your bills covered and saved some money away, then you can spend it without feeling guilty or worried. However, when that money runs out, you should also stop spending.
One effective way to keep yourself from falling into debt is to understand the difference between your wants and needs. When you go out shopping, ask yourself if this item is something that you really need.
Do you really need that $1,000 iPhone X or that home theatre ultra-HD large screen television? If you’re not totally sure, give it some time. Wait before you go and buy something.
The best way to increase your income is to get a side job. The good thing is you can find plenty of ways to make extra money during your free time. When you’ve got some additional cash flowing to your bank account, it will be easier to keep up with payments, boost your savings, and even indulge in some of the things you like to do every now and then, like eating out or taking a short vacation.
Knowing how to live within your means and learning to be content are simple but effective ways to manage your personal finances efficiently and have a more stable future. We hope these tips can help you get into the right mindset and not feel like you’re missing out on life.